The market for second hand vehicles is extremely large in India. Many new riders and drivers often prefer to drive a used vehicle so as to prevent any major damages arising due to accidents when one has just begun to drive. Yet others find second hand cars much more affordable than brand new ones. It is therefore not common for people to own used vehicles any more. However, when one purchases a second hand car one needs to look for more than just the price of the car and its make and model. While the new owner gets possession of the car’s registration documents, he must also pay attention to the car insurance policy purchased by the previous owner and get it transferred to his/her name. Let’s find out everything about how to transfer car insurance.
Driving without insurance is a punishable offence according to the Indian Penal Code and the Motor Vehicle Act of 1988. Once you choose your vehicle, you shift your concentration on transferring the vehicle registration documents to your name. But, as a new owner of the car, you must pay as much attention on the transfer of the car’s insurance.
Once you finalise the vehicle of your choice, you must begin with both, the process of transferring the ownership of the car along with transference of car insurance. Both processes should work in tandem. As soon as the car’s ownership is transferred to your name, the previous owner’s car insurance policy becomes invalid if the transfer is not done at the same time. As per the laws laid down by the Insurance Regulatory and Development Authority of India or IRDAI, A vehicle insurance claim can be filed only if the name and address on the vehicle registration documents match with those on the insurance documents. If the vehicle is in an accident, the new owner of the vehicle can recover the cost of damages. In case the vehicle is uninsured, the claim can be rejected. Let’s find out how to transfer car insurance to new owner.
You also need to remember that if the insurance is not transferred within the stipulated time, the insurance policy may be rendered void and the insurance provider is not obligated to provide any refunds or discounts.
Apart from knowing how to transfer car insurance, one must also be aware of the fact that they can benefit from the no-claims bonus. Whether the policy is transferred from one person to another or from one insurance provider to another, the previous owner of the insurance policy can provide the NCB retention letter to the insurer and avail discounts on his insurance premiums.
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